Dear Seniors,
I am working for a state PSU manufacturing unit. In our organization, there is a fixed 3% increment every year for all employees. Now, my question is if an employee's attendance is less than 240 days in a year, are they still eligible for the annual 3% increment? Please provide your kind suggestions and specify the exact calculation for such an annual increment.
Regards, Masterguna.
Also, mail to gunamoni33@gmail.com
From India, Delhi
1I am working for a state PSU manufacturing unit. In our organization, there is a fixed 3% increment every year for all employees. Now, my question is if an employee's attendance is less than 240 days in a year, are they still eligible for the annual 3% increment? Please provide your kind suggestions and specify the exact calculation for such an annual increment.
Regards, Masterguna.
Also, mail to gunamoni33@gmail.com
From India, Delhi
Dear Sir(s),
You have not mentioned whether the PSU in which you are working is a Central Govt. Unit or State Govt. Undertaking. The award of annual increment is based on the service rules/regulations adopted by the PSUs. If you or any employee of your organization has been denied a yearly increment, then you or the employee can ask the management about the rules/regulations on the basis of which the annual increment has been denied.
With regards,
Harsh Kumar Mehta
From India, Noida
You have not mentioned whether the PSU in which you are working is a Central Govt. Unit or State Govt. Undertaking. The award of annual increment is based on the service rules/regulations adopted by the PSUs. If you or any employee of your organization has been denied a yearly increment, then you or the employee can ask the management about the rules/regulations on the basis of which the annual increment has been denied.
With regards,
Harsh Kumar Mehta
From India, Noida
PS. You have mentioned "state" PSU in your remarks. Please see which of the service rules are applicable to employees of your PSU. You can also ascertain the causes of non-sanction of yearly increments through RTI.
Harsh Kumar Mehta
From India, Noida
Harsh Kumar Mehta
From India, Noida
In pvt organisations, the increment is on prorata deducting the LOP period subject to the performance of individual. Pon
From India, Lucknow
From India, Lucknow
Dear M. Guna,
Yearly increment is a type of award given to an employee for their dedication towards work, work performance, and for encouraging other employees. However, the employer cannot be forced to give an increment. It may be provided based on work performance, company rules, government notification, if required, or as per the terms of the Appointment Letter.
You mentioned that you work for a state PSU manufacturing unit, and you also noted that "In our organization, there is a fixed 3% annual increment for all," which suggests that you may be deployed there through a contract agency, if my understanding is correct.
In this scenario, there may be specific Rules & Regulations or Terms and Conditions for the yearly increment of employees as per the contract agreement with the State Government. Therefore, I recommend inquiring with your management about the criteria for the Yearly Increment.
Thank you.
From India, Delhi
Yearly increment is a type of award given to an employee for their dedication towards work, work performance, and for encouraging other employees. However, the employer cannot be forced to give an increment. It may be provided based on work performance, company rules, government notification, if required, or as per the terms of the Appointment Letter.
You mentioned that you work for a state PSU manufacturing unit, and you also noted that "In our organization, there is a fixed 3% annual increment for all," which suggests that you may be deployed there through a contract agency, if my understanding is correct.
In this scenario, there may be specific Rules & Regulations or Terms and Conditions for the yearly increment of employees as per the contract agreement with the State Government. Therefore, I recommend inquiring with your management about the criteria for the Yearly Increment.
Thank you.
From India, Delhi
Hello,
PSU service rules are an unknown territory to me.
Based on Private Sector practices, applicable law, and at a conceptual level, I wish to state the following:
1) The magic figure of 240 days is relevant only regarding determining eligibility for Earned Leave in the manufacturing sector (where the Factories Act is applicable) and concerning the Industrial Employment (Standing Orders) Act 1946 where Clause 4-C of the Model Standing Orders makes it mandatory for the employer to confirm any temporary employee who completes 240 days in a period of the previous twelve months.
2) At a conceptual level, there is a very weak connection between the "attendance" level of increment. In fact, there is often seen a negative correlation, but the idea of anyone with "good" attendance receiving a good increment is really unheard of!
3) Increment and 240 days of attendance are NOT issues with any law. It is the Management's policy on the subject that should decide the issue!
Trust there is enough clarity on the query.
Regards,
Samvedan
November 9, 2013
From India, Pune
PSU service rules are an unknown territory to me.
Based on Private Sector practices, applicable law, and at a conceptual level, I wish to state the following:
1) The magic figure of 240 days is relevant only regarding determining eligibility for Earned Leave in the manufacturing sector (where the Factories Act is applicable) and concerning the Industrial Employment (Standing Orders) Act 1946 where Clause 4-C of the Model Standing Orders makes it mandatory for the employer to confirm any temporary employee who completes 240 days in a period of the previous twelve months.
2) At a conceptual level, there is a very weak connection between the "attendance" level of increment. In fact, there is often seen a negative correlation, but the idea of anyone with "good" attendance receiving a good increment is really unheard of!
3) Increment and 240 days of attendance are NOT issues with any law. It is the Management's policy on the subject that should decide the issue!
Trust there is enough clarity on the query.
Regards,
Samvedan
November 9, 2013
From India, Pune
Dear Guna,
The increment is based on the performance of the employee and the company's profit. As said by Mr. Samvedan, the 240 days count is meant for earned leave calculation, gratuity calculation, and serving of notice period, and not for calculating increment. The increment can be calculated on a pro-rata basis based on the company's PMS Policy.
From India, Kumbakonam
The increment is based on the performance of the employee and the company's profit. As said by Mr. Samvedan, the 240 days count is meant for earned leave calculation, gratuity calculation, and serving of notice period, and not for calculating increment. The increment can be calculated on a pro-rata basis based on the company's PMS Policy.
From India, Kumbakonam
It is very difficult for members to respond to your query in the absence of actionable information. I can only say in general terms that in PSUs, normally granting an annual increment is automatic unless the employee exhausts their leave and remains on loss of pay. Thus, in PSUs, the possibilities of withholding or postponing an annual increment may arise in the following cases:
1) when the absence is on loss of pay, in which case the increment gets postponed to the extent of loss of pay, or
2) where an increment is withheld by way of punishment, or
3) where the granting of the increment is linked to an efficiency bar/performance as laid down under the rules.
B.Saikumar
From India, Mumbai
1) when the absence is on loss of pay, in which case the increment gets postponed to the extent of loss of pay, or
2) where an increment is withheld by way of punishment, or
3) where the granting of the increment is linked to an efficiency bar/performance as laid down under the rules.
B.Saikumar
From India, Mumbai
Normally, there is no such restriction on attendance to receive an annual increment. However, this policy is established when determining the increment pattern or wage scales. In this regard, I fully agree with Mr. B. Saikumar. Instead of seeking an answer externally, you should first investigate within your organization how and when the system of annual increments was implemented, and if there are any qualifying clauses.
From India, Kolhapur
From India, Kolhapur
As I endorse the reply of Mr. Sai Kumar, I may add what has been said by him as follows:
While the increment in PSUs is time-bound, automatic grant except when withheld by a specific order as a punishment arising out of a disciplinary inquiry as a result of charges framed like unauthorized absence (habitual absenteeism), other offenses warranting inquiry, etc. Even in LOPs when these kinds of extraordinary leave granted or authorized leave (for higher studies, confinement, sickness) still the increment could be granted if the concerned authority satisfies the genuineness of the ground of leave.
However, if and when the Probation period is not completed successfully and extended, the increment could be postponed irrespective of the time-bound rules.
In many cases when increments are withheld as a punishment, the authorities revoke later, on some grounds like subsequent good performance or such other considerations, including the interference of Union influence.
But in the private sector, in many cases, it is not automatic but based on performance, etc.
From India, Bangalore
While the increment in PSUs is time-bound, automatic grant except when withheld by a specific order as a punishment arising out of a disciplinary inquiry as a result of charges framed like unauthorized absence (habitual absenteeism), other offenses warranting inquiry, etc. Even in LOPs when these kinds of extraordinary leave granted or authorized leave (for higher studies, confinement, sickness) still the increment could be granted if the concerned authority satisfies the genuineness of the ground of leave.
However, if and when the Probation period is not completed successfully and extended, the increment could be postponed irrespective of the time-bound rules.
In many cases when increments are withheld as a punishment, the authorities revoke later, on some grounds like subsequent good performance or such other considerations, including the interference of Union influence.
But in the private sector, in many cases, it is not automatic but based on performance, etc.
From India, Bangalore
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